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How The $649 iPhone 5 Costs Only $180 To Make

The latest iPhone is already sold out in most stores, only about a year after the iPhone 4 came out. UBM TechInsights estimated the iPhone 4 to cost Apple about $203 to manufacture. UBM TechInsights took a look at the iPhone 5 and discovered that it's actually costing Apple a lot less to manufacture than its predecessor, despite having some more expensive components.

Apple claims that the iPhone 5 is its most powerful iPhone to date and boasts it has a larger screen than any of the previous versions. The latest iPhone is already sold out in most stores, only about a year after the iPhone 4S came out. UBM TechInsights estimated the iPhone 4 to cost Apple about $203 to manufacture, and took a look at the iPhone 5 and discovered that it's actually costing Apple a lot less to manufacture than its predecessor, despite having some more expensive components.

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